Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-08-30


BE thus disregarded
The motion of the District Attorney for per-
emptory order upon fie witness 10 answer the
interogatories prorsunded, as set forth in the
petition of the Rs lway Commission, is, there
fore, denied.
Judge sawyer's Concurrixg Opinion.
Fudge Sawye2 read coRcurring opinion
nearly as long IS that of Justice Field, OF which
the followiDgis an abstract;
fully concur in the reasoning of the Circuit
Justice and the conclusions reached, but deem
1t proper tcs present some tlrther views in sup
port of our decision.
II Is NECESSARY to understand the exact legal
relation OF the Central Pacific Railroad Company
to the United States in'crder to correctly appre-
ciste the constitutional powers OF Congress ana
of the Commission Getting under its authority
oyeTst The Central Pacific Railroad Company
isa private corporation, created and existing
under the laws of DIE State of California 1t de-
rrcd none of its corporate faculties or franchises
from the United States. 1t is in no way subject
y the control laws of the United States, 'ex-
eept so far as it is subject to regulation, as an
instrument of foreign or interstate commerce
or its AUTHORITY to establish post roads or its
I war powers, in pursuance OF the constitutional
provisions on the subject or such regulation as
is authorized by the terms of the contract found
| in the Acts of Congress of 1862 and 1864, ac-
| cepted by the railroad company contract
The Central Pacific Railroad Company is SIM
ply an artificial person, created with certain fac
miles by the Stale of California and stands in re-
lation to the United States, within the scope of
! its faculties, in precisely the same situation
| natural person unQer ike CIRCUMSTANCES. Inc
| United States has no more and no less power
| over it than it would have over natural person
! in the same situation. The contract might as
| well have been made with a natural person as
| with corporation. Had the grantee under the
| Acts of Congress been a natural person instead
| of the Central Pacific Railroad Company. ae-
| cepting the terms of the contract rendered by
| the Act, and constructing the road and perform-
ing the conditions of the contract the rights of
4 the United States would have been precisely
such as they are now with respect TO the Central
Pacific Railroad Company-no more and no
less. Since all the conditions ofthe contract on
| the part of the Central Pacific Railroad Com
pany have been fully performed in all respects,
so far as they are required to be performed for
that purpose the title to the lands granted has
fully vested, and the Government bonds having
been delivered, the Central Pacific Railroad
Company has become the absolute owner of the
| road and all its appurtenanees, together with
the lands granted and bonds issued, subject
only to the mortgage to secure the payment OF
| the bonds issued by ITSELF and the lien OF the
Government to secure its advances, in all re-
| spects in the same manner and to the same ex-
tent as if it were natural person similarly stu
| ated. The United States has no further control
| over or interest in said lands or bonds.
| 1t is consequently amatter OF no legal concern
to the United States what disposition the com
pany made ofthe lands or bonds, and they have
| no right to inquire into the matter of their dis
position, in any other mode, or under any other
| circumstances, than they could have, had the
| corporation been a natural person.
| The relation of the Central Pacific Railroad
| Company to the United States therefore, under
the contract as a contract, is now simply
| that of debtor and creditor, with certain cove
nants for service on its completed road, still tC
| be performed by the latter with the debt, and
| performance of those covenants, secured by Ger
| tain specific liens upon portions of property o.
| the debtor. They stand upon an equal footing
| as contractors, and upon the same footing d.
| debtor and creditor as if the Indebtedness obi
cations and securities existed between two
natural persons This is clearly the result. al
| established by the Supreme Court i'll the sink
| ing fund cases, which has, by divided Court
| extended the power of Congress further in thai
| direction than any other, as it seems to us, anC
to the utmost admissible limit.